Ford India Pvt. Ltd. Sells Its Sanand Plant For Rs. 726 Crore To Tata Motors
Tata Motors is buying Ford Motor’s manufacturing plant in Gujarat for $91.5 million (Rs 726 crore). Tata Motors said that the deal will augment its production in the coming years.
HIGHLIGHTS
• Tata Motors signed a $91.5 million (Rs 726 crore) deal with Ford Motor’s
• The deal is for the acquisition of Ford’s Sanand manufacturing plant in Gujarat
• Ford Motors has stopped production in India last year
• Tata Motors will augment its production capacity with this deal
What Is The Deal Between Tata Motors And Ford Motors?
Tata Passenger Electric Mobility Ltd (TPEML), a subsidiary of Tata Motors, signed a deal with Ford India Pvt Ltd (FIPL) to buy its manufacturing plant in Sanand, Gujarat. The Rs 726 crore deal includes land, assets, and all eligible employees.
What Is The Importance Of The Deal For Tata Motors?
Tata Motors released a statement soon after the deal. The Indian automobile giant said that with its manufacturing capacity nearing saturation, the acquisition was timely and a win-win situation for all stakeholders. The Jaguar Land Rover parent further said that the Sanand plant will boost its manufacturing capacity from 300,000 units per year to 420,000.
Why Is Ford Motors Selling Its Sanand Plant?
Ford India had been struggling to increase its sales and profit for more than two decades. But it gave up last year and closed production. At the time of closing its business, Ford Motors had less than a 2% share in the Indian passenger vehicle market.
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